“The best way to make someone remember you is to borrow money from them”
Over the past 12 months it has become increasingly difficult to borrow money from the Australian banks, particularly for Australian expats living overseas. Whether you’re trying to buy your first investment property, refinance your existing portfolio or finance equipment, the path to an approval has become increasingly difficult.
I’ve outlined below my top 5 tips for increasingly your likelihood of having your loan application approved:
1. Resolve existing personal debt issues
If you have outstanding personal loans or credit card balances due, ensure that you clear them where possible before submitting your application.
2. Reduce your credit card balances
It should come as no surprise that banks don’t like to see a long list of personal credit cards with large credit limits on your application. If you have multiple cards that you’re not really using, or unnecessarily high credit limits, seek to reduce these before applying.
3. Update your income records
Have you received a raise in your salary over the past 12 months? Has your bonus increased? If so, ensure that your records are up to date and you’re submitting the most recent information on your application. Be sure to include other sources of income if you have them and they can be substantiated.
4. Split your expenses with your partner
If your partner is currently working, then chances are that you share your family expenses. This could be the rent, mortgage repayments, groceries, utilities, school fees or otherwise. Ensure that you only reflect your expenses on the application form if your partner is covering his/her share.
5. Compare lenders
Different lenders will typically provide different interest rates and different borrowing capacities based on their own criteria. Depending on your financing goals, it could be worthwhile to compare what you have been offered with another lender to identify the best solution for you.
Finally, always remember that while debt can be an excellent tool in your wealth creation strategy, it’s vitally important that your do your homework before adding leverage to your portfolio.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Independent Fee-Based Financial Adviser with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Book a complimentary consultation here.
Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.